4 Cheap TSX Tech Stocks to Buy Now for 2022

The pullback in the prices of these tech stocks provide an attractive buying opportunity.

Thanks to the acceleration in demand, most tech stocks listed on the TSX saw significant growth in 2020. Come 2021, these high-flying stocks witnessed increased selling due to the expected normalization in demand trends, tough comparisons, and valuation concerns. 

Given the pullback in their prices, these stocks are trading cheap and are looking attractive at current price levels. Let’s look into four such cheap tech stocks worth investing in. 

Absolute Software

Absolute Software (TSX:ABST)(NASDAQ:ABST) has corrected nearly 52% from its 52-week high. While Absolute Software got a significant boost amid the pandemic, I expect the company to continue to deliver strong financials that could support the uptrend in its price. 

Absolute Software’s strong annual recurring revenues, large addressable market, customer acquisitions, high net dollar retention rate augur well for future growth. Moreover, geographic and channel expansion, cross-selling, and a strong product pipeline will likely support its growth. 

The recent decline in ABST stock has driven its valuation lower. It is trading at an NTM (next 12-month) EV/sales multiple of 3.4, which is significantly lower than peers and its historical average. 

Docebo

Next up are the share of enterprise e-learning solutions provider Docebo (TSX:DCBO)(NASDAQ:DCBO). The company is growing fast, as reflected through the ongoing strength in its recurring revenues, contract value, and customer base. 

Docebo’s customer base increased to 2,636 in Q3 from 2,025 in the prior-year period. Further, its average contract value increased significantly. Docebo’s recurring revenues are growing at a breakneck pace, while an increased number of customers are adopting multi-year contracts. 

Looking ahead, the continued strength in its base business, product expansion, large addressable market, and high net dollar retention rate will likely support its growth. Moreover, strategic acquisitions and improving marketing productivity will likely accelerate its growth rate. Docebo stock has witnessed a healthy pullback, representing an excellent buying opportunity. 

WELL Health

The COVID-19 pandemic led to a significant rally in WELL Health Technologies (TSX:WELL) stock. However, WELL Health stock lost a considerable amount of value and is trading cheap due to the economic reopening in 2021.  

I am bullish over WELL Health and see this decline in its stock as a strong buying opportunity. The increase in the use of technology in the healthcare sector presents a strong platform for growth for WELL Health. Further, its multi-disciplinary telehealth offerings and extensive network of outpatient medical clinics position it well to capitalize on the secular industry trends. 

WELL Health is growing fast and continues to acquire clinical and digital healthcare assets. Moreover, its organic growth rate remains high. It is trading at a forward EV/sales multiple of 3.1, which is well below the pre-pandemic levels. 

Dye & Durham

Dye & Durham (TSX:DND) is an acquisitive company that is growing its sales and adjusted EBITDA rapidly. After a strong rally in 2020, Dye & Durham stock has corrected a lot, providing a good entry point. I am upbeat about Dye & Durham’s high-growth and high-margin business and expect it to benefit from increased demand amid economic reopening. 

Dye & Durham’s diversified customer base, higher revenues from the existing clients, long-term contracts, and a high retention rate augurs well for growth. Meanwhile, its robust acquisition pipeline and up-selling opportunities could continue to support its revenue and adjusted EBITDA and, in turn, drive its stock higher. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Absolute Software Corporation and Docebo Inc.

More on Tech Stocks

Happy shoppers look at a cellphone.
Tech Stocks

So You Own Shopify Stock: Is it Still a Good Investment?

Shopify (TSX:SHOP) stock has had a run, but there's still room to the upside.

Read more »

A person uses and AI chat bot
Tech Stocks

AI Where No One’s Looking: Seize Growth in These Canadian Stocks Before the Market Catches Up

Beyond flashy headlines about generative AI, these two Canadian AI stocks could deliver strong returns for investors who are willing…

Read more »

Data center servers IT workers
Tech Stocks

Better Buy: Shopify Stock or Constellation Software?

Let's dive into whether Shopify (TSX:SHOP) or Constellation Software (TSX:CSU) are the better options for growth investors in this current…

Read more »

nvidia headquarters with nvidia sign in front
Tech Stocks

Nvidia Just Delivered a Beat-and-Raise Quarter. There’s 1 Red Flag Investors Shouldn’t Ignore.

The chipmaker continued to benefit from robust demand for artificial intelligence (AI). But can it last?

Read more »

GettyImages-1473086836
Tech Stocks

Why Super Micro Computer Stock Is Soaring Today

The volatile stock is getting a boost from Nvidia.

Read more »

Snowflake logo in snowflake office on wall_snowflake-1
Tech Stocks

Here’s Why Snowflake Stock Skyrocketed Today

Shares of the data company are up 32% for the day.

Read more »

man touching magnifying glass button on floating search bar internet google search engine
Tech Stocks

Why Alphabet Stock Was Sliding Today

The parent company of Google is facing heat from U.S. regulators.

Read more »

chart reflected in eyeglass lenses
Tech Stocks

Top Canadian AI Stocks to Watch in 2025

Celestica (TSX:CLS) stock and another Canadian AI stock are worth watching closely this holiday season.

Read more »